Awards & Engraving

January '20

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A&E JANUARY 2020 • 29 Sales & Marketing by thinking about it as what rate would I pay an employee to do production? This should not be what you think you should make an hour for your time, even if you are the only employee. Look ahead on this one or you will price yourself out of the market, or leave this out and never be able to hire help. Assume that you are going to press one item at a time, especially at the beginning. Eventually, you'll become more efficient, like pressing multiple products at a time to improve your bottom line. Packaging: Even if you are going to hand-deliver your finished product to the customer, a legitimate business puts the finished goods in some sort of a package. In this case, with breakable items, the cost can be higher. This number is dependent on your business and how you operate, just don't forget there are hard costs to this — even if you are re-taping a box, you still have to buy the tape. Additional Labor: Most of us miss on this critical factor, making business growth nearly impossible. Just like pressing labor, consider the cost of an employee to take the order, prep and print the job, as well as the time to package and handle the job before delivery. Scrap and Spoilage: This section must be included in some form or you are at risk of losing money on every job down the road. With sublimation, the perma- nency of the ink is its draw, but for the producer, it is also a challenge. If an error occurs in production, there is no fixing it — you must make a new one. Even the most efficient production facilities should consider a 5% defect rate. This cost should also factor in inventory that you cannot sell

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